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Y12 IB Economics Elasticity Flashcards | StudBud
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Y12 IB Economics Elasticity
Y12 IB Economics Elasticity
21 terms
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StudBud Administration
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#IBEconomics #Elasticity
Flashcards
21 cards
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Practice quiz
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Questions
21
Answers
1
If PEd is greater than 1 then it is
More than responsive (Inelastic)
More than responsive (Elastic)
Less than responsive (Elastic)
Less than responsive (Inelastic)
2
A Positive XeD means
The two goods are substitutes
The two goods are homogenous
The two goods are complements
This never happens
3
A good with a PED <1 their D curve will look like the letter
E
I
C
F
4
A consequence of Low PED for Primary commodities is...
A poor crop is not useful for riding horses
A poor crop might be bad for farmers
A poor crop might be good for farmers
A poor crop might be good for the Government
5
The PED value is usually
Positive but treated as if it were negative
Negative but is treated as if it were positive
Generally positive but sometimes negative
Negative but treated as if it were negative
6
If XeD is Zero this means
The goods are not related
This never happens
The goods are complements
The goods are substitutes
7
Cross Price Elasticity of Demand measures the
response of demand of one good to a change in price
response of QS of one good to a change in price of another
response of QD of one good to a change in price of another
response of QS of one good to a change in Income of another
8
PED is influenced by
Number and closeness of complements
Number and closeness of the Kardasian family
Number and closeness of substitutes
Number and closeness of inferior goods
9
If PED is less than 1 then
It is less than responsive (elastic)
It is more than responsive (Inelastic)
It is less than responsive (inelastic)
It is more than responsive (elastic)
10
Price Elasticity of Supply measures
the responsiveness of Qs to a change in Income
Still more Elasticity questions...you kidding me?
the responsiveness of Qd to a change in Price
the responsiveness of Qs to a change in Price
11
Price Elasticity of Demand is
a measure of the responsiveness of QY to a change in Price
measure of the responsiveness of demand to a change in Price
a measure of the responsiveness of QS to a change in Price
a measure of the responsiveness of QD to a change in Price
12
Elasticity is...
Very mathematical
Very useful
Simply the funniest subject
A torture method for us
13
PEd >1 the impact on TR if price is increased is...
Rise in TR
Fall in TC
Rise in TC
Fall in TR
14
If PEd is equal to 1 then it is
Inelastic Ped (Exactly proportional)
unitary PEd (Exactly proportional)
Elastic Ped (Exactly proportional)
Hmmm I'll get back to you on that one!
15
PEd is usually measured as a percentage because
Then it is independent of price
Then it is independent of units
Then it is independent of income
Then it is independent of influence from the Russians
16
Income Elasticity of Demand measures
responsiveness of Qs to a change in Price
responsiveness of Qd to a change in Income
responsiveness of Qs to a change in Income
responsiveness of Qd to a change in Price
17
Mr Smith is...
The Best Teacher ever
Isn't he secretly Superman?
The Coolest Teacher ever
One of the Best Teachers ever
18
A good with a PED >1 their D curve will look like the letter
A
I
E
D
19
How can a business with many product lines use XeD?
They dont use XeD as it is only for single goods
They can measure the impact on tax revenue if prices change
They can measure the impact on Revenue if prices change
They can measure the impact on output if prices change
20
The lower the PED for a taxed good the...
greater the deadweight loss
greater the tax revenue for the government
lesser the revenue earned from taxation
greater the impact on voting turnout
21
PED <1 and price increases the impact on TR is...
Rise in TC
TR stays the same
Rise in TR
Fall in TR
